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Bosch to Cut Working Hours and Pay for Thousands Amid Auto Sector Challenges
BERLIN (Reuters) – Bosch, recognized as the largest car parts supplier globally, is set to implement reductions in both working hours and pay for approximately 10,000 employees across Germany. This move extends beyond earlier announcements regarding job reductions and follows a significant job cut announcement made on Friday.
The decision comes as the German automotive industry grapples with declining demand and increasing competition from lower-priced offerings from Chinese manufacturers. Just a day before this announcement, Bosch revealed plans to eliminate up to 5,550 jobs, alongside a reduction in working hours for 450 staff members.
A spokesperson confirmed that employees working under 38- or 40-hour contracts across various locations in Germany will see their working hours adjusted downward to 35 hours per week. This measure aims to mitigate costs amid ongoing industry pressures.
The struggles within the German automotive sector have also raised concerns for major players like Volkswagen, which is currently embroiled in a dispute with its workforce regarding the potential closure of production facilities in the country. Similarly, Mercedes has committed to implementing stringent cost-cutting measures as it navigates this challenging landscape.
Source
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